SU Professor: Partial Gov’t shutdown creating domino effect, some effect on stock market

SELINSGROVE – Not only are government workers and those who rely on government funding suffering under the current partial government shutdown…but many businesses are affected as well. Those are the findings of Susquehanna University Economics Professor Matt Rousu. He is the Dean of the Sigmund Weis school of Business.

 

He says government workers not getting paid  will reduce their spending, “And if these entities are not spending as much, that has an impact on the grocery stores, the local Dollar Generals, the restaurants in the area, and all of those places will see a slight down-tick in business.”

 

Rousu says the Gross Domestic Product is also starting to be effected, “Entities are already starting to talk about the fact that there’s going to be a GDP reduction if this starts to carry on much more.”

 

Rousu says the GDP impact should be minimal but the uncertainty of how long the partial shutdown will last is still going to hurt business in general, and the stock market, “Uncertainty is always bad for business. It’s tougher to make investments if you are a firm if you don’t know what the next six months brings. So that also could be bad for some of these companies. So a lot of it really depends on just how long the shutdown is going to last.”

 

You can hear more from Rousu from Monday’s WKOK Sunrise on the WKOK Podcast Page.

 

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